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I opened my options express account this morning to find I had no margin requirements on my open positions and had full buying power. I have sold some coffee and Aussie dollar options so I definitely should have reduced buying power. Has anyone else seen this today?
Regards,
Bakes
Can you help answer these questions from other members on NexusFi?
General question I'm throwing out to all the readers of this thread: what is your fill size strategy?
When you see some bids at a price you like on the strikes you are looking at, do you put your full size on in one trade, and do you split your size and try to get your fill over multiple trades?
So for example: you see a bid size of 3 and you wanted to sell 30 options. Do you put an ask in at size 30 or try with 10? Presumably if you get filled you put in another 10 at the ask? Repeat until your desired size is filled?
It depends. Some commodities if you put a large quantity on your order somebody will place an order ahead of you in price. At OEC I can do Iceberg orders if necessary.
The risk of not placing the order for your full quantity is that someone else places a order at the price and takes all of the available bids and there aren't anymore bid at that price.
But most of the time I just place the order for the full quantity. Especially if you are hitting a bid that is already there. You never know if the bid is an iceberg order. I have seen a lot of those in coffee lately.
I rarely hit the bid, but instead try to work an order. I place an order inside the bid/ask spread to become the new top of book on the ask and then work it down incrementally. For example: 5 bid at 10 ask. I'll put in an order at 9 then work it down towards 5. It was on this working an order that I wanted people's insight as to the size I show.
I shall experiment some more with always putting in my full size and see how it performs. Thanks again!
Oh yeah if bid/ask is spread apart I usually try to work inbetween.
But like today on the KCU3 200C I just hit the bid for my full quantity because the price was fair and I wanted them before someone else got them. With that short DTE there aren't always a lot of bids. I suspect it was someone wanting out of shorts.
Now something further out in time you can play a little more with asks higher than the bids because those are probably somebody wanting to put on new positions. Like when we put on the KC 300 calls at 90+ DTE.
But using your example, if you put a full size order at 9, someone could sense you might come lower, because of your larger size order, and be ahead of you by bidding at 7 or 6. So in this example I would use the lower size at 9 and increase it when going to 8, 7, 6.